FFIEC 031, 032, 033, and 034 CONTENTS Instructions for ...

[Pages:420]FFIEC 031, 032, 033, and 034

Instructions for Preparation of Consolidated Reports of Condition and Income

(FFIEC 031, 032, 033, and 034)

CONTENTS

GENERAL INSTRUCTIONS

Who Must Report on What Forms Close of Business Frequency of Reporting Differences in Detail of Reports Shifts in Reporting Status

Organization of the Instruction Books Preparation of the Reports Signatures

Officer Declaration Director Attestation Submission of the Reports Submission Date Amended Reports Scope of the "Consolidated Bank" Required to be Reported in the Submitted Reports Exclusions from the Coverage of the Consolidated Report Rules of Consolidation Reporting by Type of Office Publication Requirements for the Report of Condition Release of Individual Bank Reports Applicability of Generally Accepted Accounting Principles to Regulatory Reporting Requirements Accrual Basis Reporting Reporting of Loan Detail by Banks with Assets of Less Than $300 Million and No Foreign Offices Miscellaneous General Instructions Rounding Negative Entries Verification Transactions Occurring Near ht e End of a Reporting Period Separate Branch Reports

CONTENTS

1 1 2 2 3 4 5 5 5 5 5 7 7

8 8 9 10 11 11

11 12

12 15 15 15 16 16 16

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CONTENTS

LINE ITEM INSTRUCTIONS FOR THE CONSOLIDATED REPORT OF CONDITION

Schedule RC -- Balance Sheet Schedule RC-A -- Cash and Balances Due from Depository Institutions

(FFIEC 031, 032, and033 only) Schedule RC-B -- Securities

Schedule RC-C -- Loans and Lease Financing Receivables Part I. Loans and Leases Part II. Loans to Small Businesses and Small Farms

Schedule RC-D -- Trading Assets and Liabilities (FFIEC 031 and 032 only) Schedule RC-E -- Deposit Liabilities Schedule RC-F -- Other Assets Schedule RC-G -- Other Liabilities Schedule RC-H -- Selected Balance Sheet Items forDomestic Offices

(FFIEC 031 only) Schedule RC-I -- Selected Assets and Liabilities of IBFs (FFIEC 031 only) Schedule RC-K -- Quarterly Averages Schedule RC-L -- Off-Balance Sheet Items Schedule RC-M -- Memoranda Schedule RC-N -- Past Due and Nonaccrual Loans, Leases, and

Other Assets Schedule RC-O -- Other Data for Deposit Insurance and

FICO Assessments Schedule RC-R -- Regulatory Capital Optional Narrative Statement Concerning the Amounts Reporting in

the Reports of Condition and Income

RC-1

RC-A-1 RC-B-1

RC-C-1 RC-C-33

RC-D-1 RC-E-1 RC-F-1 RC-G-1

RC-H-1 RC-I-1 RC-K-1 RC-L-1 RC-M-1

RC-N-1

RC-O-1 RC-R-1

RC-X-1

LINE ITEM INSTRUCTIONS FOR THE CONSOLIDATED REPORT OF INCOME

Schedule RI -- Income Statement Schedule RI-A -- Changes in Equity Capital Schedule RI-B -- Charge-offs and Recoveries and Changes in Allowance for Loan and Lease Losses

Part I. Charge-offs and Recoveries on Loans and Leases Part II. Changes in Allowance for Loan and Lease Losses Schedule RI-D -- Income from International Operations (FFIEC 031 only) Schedule RI-E -- Explanations

RI-1 RI-A-1

RI-B-1 RI-B-8 RI-D-1 RI-E-1

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FFIEC 031, 032, 033, and 034

GLOSSARY Accounting Changes Acquisition, Development, or Construction (ADC) Arrangements Allowance for Loan and Lease Losses Bankers Acceptances Banks, U.S. and Foreign Borrowings and Deposits in Foreign Offices Brokered Deposits Broker's Security Draft Business Combinations Capitalization of Interest Costs Cash Management Arrangements Commercial Paper Commodity or Bill-of-Lading Draft Coupon Stripping, Treasury Receipts, and STRIPS Custody Account Dealer Reserve Account Depository Institutions in the U.S. Deposits Derivative Contracts Dividends Domestic Office Domicile Due Bills Edge and Agreement Corporation Extinguishments of Liabilities Extraordinary Items Fails Federal Funds Transactions Federally-Sponsored Lending Agency Foreclosed Assets Foreign Currency Transactions and Translation Foreign Debt Exchange Transactions Foreign Governments and Ofifcial Institutions Foreign Office Hypothecated Deposit Income Taxes Internal-Use Computer Software International Banking Facility (IBF)

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CONTENTS

A-1 A-3 A-3 A-4 A-7 A-9 A-9 A-11 A-11 A-13 A-14 A-15 A-15 A-15 A-16 A-16 A-16 A-17 A-25 A-33 A-33 A-33 A-34 A-34 A-34 A-34 A-35 A-35 A-36 A-36 A-39 A-40 A-41 A-42 A-42 A-42 A-50 A-50a

CONTENTS

FFIEC 031, 032, 033, and 034

GLOSSARY (cont.) Lease Accounting Letter of Credit Loan Loan Fees Loan Impairment Loan Secured by Real Estate Loss Contingencies Mandatory Convertible Debt Market Value of Securities Nonaccrual of Interest Offsetting Overdraft Pass-through Reserve Balances Placements and Takings Preferred Stock Premiums and Discounts Reciprocal Balances Repurchase/Resale Agreements Sales of Assets for Risk-Based Capital Purposes Securities Activities Securities Borrowing/LendingTransactions Servicing Assets and Liabilities Shell Branches Short Position Start-Up Activities Subordinated Notes and Debentures Subsidiaries Suspense Accounts Syndications Trade Date and Settlement Date Accounting Trading Account Transfers of Financial Assets Treasury Stock Troubled Debt Restructurings U.S. Territories and Possessions Valuation Allowance When-Issued Securities Transactions

INDEX

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CONTENTS

A-52 A-54 A-55 A-56 A-58 A-59 A-59 A-60 A-60 A-60 A-63 A-65 A-66 A-66 A-67 A-67 A-68 A-68 A-70 A-74 A-74a A-74b A-75 A-75 A-76 A-76 A-76a A-76b A-76b A-77 A-77 A-78 A-81 A-81 A-83 A-83 A-83

CONTENTS

FFIEC 031, 032, 033, and 034

GENERAL INSTRUCTIONS

GENERAL INSTRUCTIONS

Schedules RC and RC-A through RC-R constitute the Report of Condition and its supporting schedules. Schedules RI and RI-A through RI-E constitute the Report of Income and its supporting schedules.

WHO MUST REPORT ON WHAT FORMS

Every national bank, state member bank, and insured state nonmember bank is required to file consolidated Reports of Condition and Income normally as of the close of business on the last calendar day of each calendar quarter, i.e., the report date. The specific reporting requirements depend upon the size of the bank and whether it has any foreign offices. Banks must file the appropriate forms as described below:

(1) BANKS WITH FOREIGN OFFICES: Banks ofany size that have any "foreign" offices (as defined below) must file quarterly theConsolidated Reports of Condition and Income for a Bank with Domestic and Foreign Offices(FFIEC 031). For purposes of these reports, all of the following constitute "foreign" offices:

(a) an International Banking Facility (IBF);

(b) a branch or consolidated subsidiary in a foreign country, Puerto Rico, or a U.S. territory or possession; or

(c) a majority-owned Edge or Agreement subsidiary.

However, for purposes of these reports, a branch at a U.S. military facility located in a foreign country is a "domestic" office.

(2) BANKS WITHOUT FOREIGN OFFICES AND WITH ASSETS OF $300 MILLION OR MORE: Such banks that have only domestic offices mustilfe quarterly the Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only and Total Assets of $300 Million or Mor(eFFIEC 032).

(3) BANKS WITHOUT FOREIGN OFFICES AND WITH ASSETS OF $100 MILLION OR MORE BUT LESS THAN $300 MILLION: Such banks that have only domestic offices must file quarterly the Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only and Total Assets of $100 Million or More but Less than $300 Million(FFIEC 033).

(4) BANKS WITHOUT FOREIGN OFFICES AND WITH ASSETS OF LESS THAN $100 MILLION: Such banks that have only domestic offices must file quarterly theConsolidated Reports of Condition and Income for a Bank with Domestic Offices Only and Total Assets of Less Than $100 Millio(nFFIEC 034).

Close of Business

The term "close of business" refers to the time established by the reporting bank as the c-uotff time for receipt of work for posting transactions to its general ledger accounts for that day. The time designated as the close of business should be reasonable and applied consistently. The posting of a transaction to the general ledger means that both debit and credit entries are recorded as of the same date. In addition, entries made to general ledger accounts in the period subsequent to the close of business on the report date that are applicable to the period covered by the Reports of Condition and

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GENERAL INSTRUCTIONS

FFIEC 031, 032, 033, and 034

GENERAL INSTRUCTIONS

Income (e.g., adjustments of accruals, posting of items held in suspense on the report date to their proper accounts, and other quarter-end adjusting entries) should be reported in the Reports of Condition and Income as if they had actually been posted to the general ledger at or before the c-uotff time on the report date.

With respect to deposits received by the reporting bank after the cu-ot ff time for posting them to individual customer accounts for a report date (i.e., so-called "next day deposits" or "late deposits"), but which are nevertheless posted in any manner to the reporting bank's general ledger accounts for that report date (including, but not limited to, through the use of one or more general ledger contra accounts), such deposits must be reported in (1) Schedule RC, Balance Sheet, item 13, "Deposits," and in Schedule R-EC, Deposit Liabilities, or (2) in Schedule RC-O, Other Data for Deposit Insurance and FICO Assessments, item 2, "Unposted credits." The use of memorandum accounts outside the reporting bank's general ledger system for control over "next day" or "late deposits" received on the report date will not cause such deposits to be reportable in Schedules RC and RC-E or Schedule RC-O.

Frequency of Reporting

The reports are required to be submitted quarterly by all banks. However, some schedules are required on a less frequent basis for some banks.

(1) For all banks, Schedule RC-C, part II, Loans to Small Businesses and Small Farms, is to be filedonly as of the June 30 report date.

(2) For banks with domestic offices only and total assets of less than $100 million (those banks filing the FFIEC 034), Schedule R-IA, Changes in Equity Capital, and Schedule R-IB, part II, Changes in Allowance for Loan and Lease Losses, are to be filed only as of the December 31 report date. All other banks must report these schedules quarterly.

Differences in Detail of Reports

The amount of detail required to be reported varies among the four versions of the report, with the report for banks with less than $100 million in assets and with only domestic offices (FFIEC 034) having the least amount of detail and the report for banks with foreign offices (FFIEC 031) having the most.

Also, within the FFIEC 031 and FFIEC 032:

(1) banks with $1 billion or more in total assets or with $2 billion or more in par/notional amount of offbalance sheet derivative contracts must provide detail on trading assets and liabilities (in Schedule RC-D) and

(2) banks with $1 billion or more in total assets must provide U.S. and no-nU.S. addressee information on customers' liability on acceptances outstanding (in Schedule R-CM, item 5)

that smaller banks filing these reports do not.

Similarly, within the FFIEC 034, banks with less than $25 million in assets have somewhat less detailed requirements in Schedule RC-K, Quarterly Averages, and Schedule RI, Income Statemen, tthan do larger banks filing the FFIEC 034.

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GENERAL INSTRUCTIONS

FFIEC 031, 032, 033, and 034

GENERAL INSTRUCTIONS

In addition, the required basis of reporting the loan detail in Schedules R-CK (Quarterly Averages), RC-N (Past Due and Nonaccrual Loans, Leases, and Other Assets), R(IIncome Statement), and RI-B, part I (Charge-Offs and Recoveries on Loans and Leases), and in one memorandum item in SchedulReC-C, part I (Loans and Leases), butnot in the body of ScheduleRC-C, part I, itself, is different for banks over and under $300 million in assets with no foreign offices. For a more detailed discussion, refer to "Reporting of Loan Detail by Banks with Assets of Less Than $300 Million and No Foreign Offices" below in these General Instructions.

Shifts in Reporting Status

All shifts in reporting status (except as noted below) are to begin with the March Reports of Condition and Income. Such a shift will take place only if the reporting bank's total assets (or, in one case, loans) as reflected in the Report of Condition for June of the previous year equal or exceed the criteria specified below.

Shifts requiring a change in report form:

(1) Upon establishment of a foreign office-- A bank, regardless of size, with only domestic offices that establishes or acquires any "foreign" office as described above, including an IBF, must begin filing the FFIEC 031 (Consolidated Reports of Condition and Income for a Bank with Domestic and Foreign Offices) for the first quarterly report date following the commencement of operations by the "foreign" office. However, a bank with "foreign" offices that divests itself oaf ll its "foreign" offices must continue filing the FFIEC 031 through the end of the calendar year in which the cessation of all operations of its "foreign" offices was completed.

(2) At $100 million or more in total assets for banks with domestic offices onl-y- A bank will begin filing the FFIEC 033 instead of the FFIEC 034.

(3) At $300 million or more in total assets for banks with domestic offices onl-y- A bank will begin filing the FFIEC 032 rather than the FFIEC 033.

Shifts requiring the reporting of additional information without a change in report form:

(1) At $25 million or more in total assets for banks with domestic offices onl-y- A bank must report additional loan information on Schedule RC-K, Quarterly Averages, and on Schedule RI, Income Statement.

(2) At $1 billion or more in total assets-- A bank, with or without foreign offices, must begin reporting detailed information on trading assets and liabilities (Schedule R-CD) and U.S. and non-U.S. addressee information on customers' liability on acceptances outstanding (SchedulReC-M, item 5). Such a bank must also begin to complete Schedule RC-R, Regulatory Capital, in its entirety.

(3) When "Loans to finance agricultural production and other loans to farmers" exceed five percent of total loans, net of unearned income-- A bank filing the FFIEC 033 or 034 with "Loans to finance agricultural production and other loans to farmers" (Schedule RC-C, part I, item 3) exceeding five percent of total loans, net of unearned income (sum of Schedule RC-C, part I, items 1 through 8, less item 10 on the FFIEC 034; sum of Schedule RC-C, part I, items 1 through 9, less item 11 on the FFIEC033), must begin reporting information relating to agricultural loans in a memorandum item in each of four Call Report schedules (SchedulesRI; RI-B, part I; RC-K; and RC-N). Banks with less than $25 million in total assets are not required to report this agricultural loan information in Schedules RI and R-KC.

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GENERAL INSTRUCTIONS

FFIEC 031, 032, 033, and 034

GENERAL INSTRUCTIONS

Once a bank begins to file the report form applicable to a bank with a larger amount of total assets or begins to report the additional information without a change in report form (except as noted for banks with foreign offices), it must continue to file that form or report the additional information unless it establishes a foreign office or its assets increase to an even larger total asset category.

Banks involved in business combinations (poolings of interests, purchase acquisitions, or reorganization-s-) Beginning with the first quarterly report date following the effective date of a business combination involving a bank and one or more other depository institutions, the resulting bank, regardless of its size prior to the business combination, must file (a) the report form appropriate to its size (FFIEC 032, 033, o0r34) immediately after the consummation of the transaction, if it has domestic offices only, or (b) the FFIEC 031, if it acquires any "foreign" office as described above, including an IBF.

Operating depository institutions that become FDIC-insured banks -- Beginning with the first quarterly report date after becoming an FDIC-insured bank, an operating depository institution that was not previously a member of the FDIC must file (a) the report form appropriate to its size (FFIEC032, 033, or 034) at the time it becomes an FDIC-insured bank, if it has domestic offices only, or (b) the FFIEC031, if it has any "foreign" office as described above, including an IBF.

ORGANIZATION OF THE INSTRUCTION BOOKS

This instruction book covers all four sets of report forms (i.e., the FFIEC 031, the FFIEC 032, the FFIEC 033, and the FFIEC 034). It is divided into the following sections:

(1) The General Instructions describe overall reporting requirements.

(2) The Line Item Instructions for each schedule of the Report of Condition.

(3) The Line Item Instructions for each schedule of the Report of Income.

The instructions and definitions in sections (2) and (3) are not necessarily se-clfontained; reference to more detailed treatments in the Glossary may be needed.

(4) The Glossary presents, in alphabetical order, definitions and discussions of accountingssiues and other topics that require more extensive treatment than is practical to include in the line item instructions or that are relevant to several line items or to the overall preparation of these reports. The Glossary is not, and is not intended to be, a comprehensive discussion of the principles of bank accounting or reporting.

In determining the required treatment of particular transactions or portfolio items or in determining the definitions and scope of the various items, the General Instructions, the line item instructions, and the Glossary (all of which are extensively cross-referenced) must be used jointly. A single section does not necessarily give the complete instructions for completing all the items of the reports.

Banks may obtain additional copies of the instruction books from their appropriate federal bank supervisory agency -- the Federal Reserve Banks, the Comptroller of the Currency, or the Federal Deposit Insurance Corporation.

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